Why It Is So Important To Price A Property Correctly

Dated: 12/04/2016

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Every home owner intending on selling wants to realize the greatest sale price possible. And therein lies the problem. The thinking should rather be “greatest sale price probable”. Sure, it’s “possible” that a $450,000 property will be sold for $600,000, but it’s NOT probable. An owner’s insistence on pricing their own property in the absence of market statistics while passing on the advice of a real estate professional is not only frightfully common, but a recipe for failure, wasted time, money and an expired listing!

“I know EXACTLY what your home is worth: it’s worth precisely what a buyer is willing to pay for it!”

And it matters not how much the owner loves his home, how many memories were made there and what he and she invested to make it so special. The next owner (also known as the buyer who wants the most for his/her money) does not care which ancient forest the steps to the second floor were sourced from, does not care about the fact that your four children all took their first steps in the living room in front of the fire place or that Kim Kardashian has the same shade of peachpuff on her master bedroom walls.

The fact is that it’s still just a 4 bedroom, 3.5 bathroom, pool home on half an acre with 3200 square feet of living space...PERIOD! Of course condition and amenities are of importance, but many homeowners insist on pricing themselves out of a successful sale. Not only that, the unrealistic price only serves to sell ALL other homeson the block.

But here is the MOST important reason why pricing beyond actual market value is a sure recipe for failure: if the buyer requires a home loan there WILL be an appraisal! And guess what, in order to protect the buyer and provide a way out of the deal, standard real estate contracts stipulate that the home must appraise “at or above” the purchase price.

So even IF there is that unbelievable offer, the home will NOT appraise for the owner imposed home price, the home fails to sell and the owner becomes incensed, insulted, irrational and starts the whole insanity with the next Realtor when the listing expires. Remember, the methods used by Realtors and appraisers more or less arrive at the same results. Why work with a Realtor if you’re just going to ignore his or her advice and determine your own price. That’s like going to the doctor only to self-diagnose your health problem and ignore the doctor's suggestions. Please, leave it to the professionals.

I want to help you save time and get the most from the sale of your home. Look no farther, call me today!

Get an instant estimate of your home's value right here, right now!

Mathias Lenssen
Trusted Real Estate Consultant
La Rosa Realty

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Mathias Lenssen

Mathias Lenssen worked for 20 years as a professional actor on stage and in commercials. He drove cars as a precision driver in the entertainment business in Hollywood. He built high-end custom comput....

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